On January 1,Year 1,Chisolm Company purchased equipment for $36,000 cash.On December 31,Year 1,depreciation of $9,000 was recorded.Which of the following correctly shows the combined effect of these two events on the income statement and statement of cash flows? Chisolm uses the direct method.

\quad

\quad

\quad

\quad

\quad

\quad

\quad

\quad

\quad

\quad

\quad

Cash Flows
Net Income

\quad

\quad

\quad

Operating

\quad

\quad

Investing

\quad

\quad

\quad

\quad

\quad

Financing
A) $On January 1,Year 1,Chisolm Company purchased equipment for $36,000 cash.On December 31,Year 1,depreciation of $9,000 was recorded.Which of the following correctly shows the combined effect of these two events on the income statement and statement of cash flows? Chisolm uses the direct method. \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad Cash Flows Net Income \quad \quad \quad Operating \quad \quad Investing \quad \quad \quad \quad \quad Financing A) B) C) D)$
B) $On January 1,Year 1,Chisolm Company purchased equipment for $36,000 cash.On December 31,Year 1,depreciation of $9,000 was recorded.Which of the following correctly shows the combined effect of these two events on the income statement and statement of cash flows? Chisolm uses the direct method. \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad Cash Flows Net Income \quad \quad \quad Operating \quad \quad Investing \quad \quad \quad \quad \quad Financing A) B) C) D)$
C) $On January 1,Year 1,Chisolm Company purchased equipment for $36,000 cash.On December 31,Year 1,depreciation of $9,000 was recorded.Which of the following correctly shows the combined effect of these two events on the income statement and statement of cash flows? Chisolm uses the direct method. \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad Cash Flows Net Income \quad \quad \quad Operating \quad \quad Investing \quad \quad \quad \quad \quad Financing A) B) C) D)$
D) $On January 1,Year 1,Chisolm Company purchased equipment for $36,000 cash.On December 31,Year 1,depreciation of $9,000 was recorded.Which of the following correctly shows the combined effect of these two events on the income statement and statement of cash flows? Chisolm uses the direct method. \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad Cash Flows Net Income \quad \quad \quad Operating \quad \quad Investing \quad \quad \quad \quad \quad Financing A) B) C) D)$

When Using the Indirect Method to Complete the Cash Flows

Multiple Choice

Correct Answer:VerifiedUnlock this answer nowGet Access to more Verified Answers free of chargeAccess For Free

Correct Answer:
Verified
Unlock this answer now
Get Access to more Verified Answers free of charge